Brief Introduction of GST

What is GST? 

The full form of GST is Goods and Service Tax. GST is only one type of Tax. This Tax is replace in all other type of tax.  GST is actually an indirect tax which is applied when customer buy a good or a service. This tax is an individual tax for the whole country.

Benefits of GST –

GST will remove  diffrent layer of taxation which are purchase tax, VAT,  entertainment tax etc.

GST available only 5 type of tax rate – 

0%, 5%, 12%, 18%, 28%.

There are two types of taxes and we will know about them below.

  1. Direct Tax: Direct Tax is a tax paid by an individual or a company directly to the government. Direct Tax is applicable for several individual/corporate earnings like salary, investments, etc.
  2. Indirect Tax: Indirect Tax is paid by an individual indirectly to the government. If an individual consumes a service they are obliged to pay tax to the authorities. For instance, when an individual eats in restaurants they are obliged to provide service tax to the authorities. The service tax is eventually gained by the government through the service providers.

GST Tax rates on these goods will be

0% 5% 12% 18% 28%
fresh meat fish fillet Frozen meat products flavoured refined sugar Chewing gum
fish cream butter pasta molasses
chicken skimmed milk powder cheese cornflakes chocolate
eggs branded paneer ghee pastries waffles
milk frozen vegetables dry fruits cakes wafers
butter milk coffee animal fat preserved vegetables pan masala
curd tea sausage jams aerated water
natural honey spices fruit juices sauces paint
fresh fruits pizza bread Bhutia soups deodorants
vegetables rusk namkeen ice cream shaving cream
flour sabudana Ayurvedic medicines instant food mixes after shave
besan kerosene tooth powder mineral water hair shampoo
bread coal agarbatti tissues dye
prasad medicines colouring books envelopes sunscreen
salt stent picture books tampons wallpaper
bindi lifeboats umbrella note books ceramic tiles
Sindoor sewing machine steel products water heater
stamps cellphones printed circuits dishwasher
judicial papers camera weighing machine
printed books speakers washing machine
newspapers monitors ATM
bangles vending machines
handloom vacuum cleaner
shavers
hair clippers
automobiles
motorcycles
aircraft
yachts